Automatic Rollover IRA Services for Ongoing Plans
Plan. Protect. Save.
Are small-balance terminated employee accounts adding time and cost to the administration of your plan? ERISA and Department of Labor (DOL) regulations allow plan sponsors to move the account of a terminated participant from the plan if their vested account balance is under $5,000. Our Automatic Rollover IRAs for missing or non-responsive terminated employees can help you:
- Lower plan administrative costs
- Reduce your fiduciary exposure
- Protect missing participants’ deferred tax status
- Redirect your staff’s time and resources to higher-value business processes
Automatic Rollover IRAs go by many names but are all effectively the same.
- Automatic Rollover IRA
- Default IRA
- Missing Participant IRA
- Safe Harbor IRA
- Force-Out IRA
- Involuntary IRA
- Cashout IRA
- Small Balance Cash-Out IRA
- Terminated Participant IRA
Express Automatic Rollover IRA Service
Our Express-level service offers many features that make it easy to establish Automatic Rollover IRA accounts for missing or non-responsive plan participants.
- Seamless online processing for all plan types
- No minimum account balances
- 24/7 access to our processing platform, Amplify
- DOL Safe Harbor compliant
- Automatic registration with the National Registry of Unclaimed Retirement Benefits®
- Annual address search and communications at no additional charge
PenChecks Trust® performs all IRA administration and participant interaction, such as 1099-R and 5498 filings, and Required Minimum Distributions (RMD). Best of all, any related IRA fees can be deducted directly from the participant’s account.
Enhanced IRA Service
Includes all Express Level services plus:
- Address search
- Mailing of 30-day mandatory distribution notice to participants for
plans where custodians process the distribution and 1099-R
Premier Level Automatic Rollover IRA Service
Our Premier Automatic Rollover IRA Service offers a turnkey solution that includes participant outreach. It features all the services offered in the Express Level, plus:
- Advanced participant searches
- First class mail notices to participants
- Certified mail notices to participants
- Participant call center
- Online benefit election website
Participants can respond to our mailings and make their elections through our secure benefit election website or by contacting our participant call center to request paper forms to complete their election.
- We establish and maintain an Automatic Rollover IRA on their behalf
- Register the participant with the National Registry of Unclaimed Retirement Benefits®
- Continue to search and attempt communication annually with the participant
PenChecks Trust performs all IRA administration and participant interaction, such as 1099-R and 5498 filings, and Required Minimum Distributions (RMD). Best of all, any related IRA fees can be deducted directly from the participant’s account.